tv Lou Dobbs Tonight FOX Business May 28, 2013 7:00pm-8:01pm EDT
for tonight's willis report, thank you for joining us, have a great night. lou: good evening, thank you for being with us on what has turned out to be a record setting portfolio on wall street. last week there were endless prediction z of pullback or correction. following market's first 3 day losing streak of the year. but today a broad rally, and nothing but bullish sentiment. dow jones gaining 106 points, ending at a new record high. s&p up 10 points, closing just 9 points below its all-time record. and the nazdaq up 30 on the day, stock pricing surging after central banks reassured investors they are sticking to
their easy money mollities -- policy, also driving rally news that home prices rose by the most in 7 years jumping 11% in march, and report showing consumer confidence surged at well -- as welll hitting a 5 year high in may, may positive has proven to be stellar for markets and the economy it ha proven a dirt aster for president obama. doing his best to get out of dodge heading to jersey shore, leaving him 4 congressional investigations that are being mounted to the irs targets of conservative organizations. while the president made his way to jersey shore. eric holder was doing his version of making nice. it seems to have occurred to the white house, they are in trouble with this attorney general, holder aattack on first
amendment and 2 news organizations, even eric ole ser trying to gain some form of humility, his office ending out invitation to media organization to hold meetings with attorney general rally, next week maybe. in a setback for holder, the house judiciary commity is now looking into whether the attorney general lead under oath to month, when holder said he was not involved in quote, potential prosecution of the press. end quote. and it is not just the president's domestic policies under fire but his lack of action on china. you know china has been showing off its new stillth fight -- stillth fighters and long range missiles, chinese hackers gained access to most advanced designs of our most sensitive weapon
systems, we will have his covered here. fox news military analyst, four-star general jack keen will join us. and ktmcfarland, and dennis kucinich will joins to discuss the obama internal revenue service scandal. and chief equity strategy sam stovall. we begin tonight with the cyber war, that is now engaged wean the united states and china. one that a new pentagon report reveals china may be winning when it come its america's top military secrets, fox news national security correspondent jenniffer griffin with our report on what military systems may have gone stolen. >> reporter: chinese hackers accessed designs of u.s. military most secret weapon system according to a an ex of a
defense department report. obtained by washington post. sources familiar with the defense science board finding confirm to fox that nearly 2 dozen weapon systems appear to have been compromised navy's premier ballistic missile defense system, and pack 3 patriot missile system, deployed to asia amidst rising tension with north korea. marine corps osprey, the navy's new combat ship, but perhaps move worrisome is the design breach involving lockheed-martin advance stealth fighter jet.
he said there is a chinese red army, and a blue army. >> which consists of their elite cyber group, that are involved in infiltrating and ex fill trading data not just from u.s. governmenn but u.s. companies. >> reporter: china's people liberation army unit 61398 is thought to be launching thousands of attacks daily from one city block according to a consensus report produced by all 16 u.s. intelligence agencies. pentagon spokesman george little tried to reassure american allies, quote, remaintain full confidence in our weapons flat s platforms, the suggestions that there are leaks are incorrect, chinese government balked at the newer accusation. >> we've said many times that cyberattacks are a global
technology, since it is technically untraceable it is difficult to find the source and identify the hacker. >> reporter:white house said that issue of cyberattacks will be brought up when president obama meets the chinese president next month in california, lou. lou: thank you very much, jennifer griffin. >> meanwhile development in syria putting new pressure on obama administration. european union has lifted arms embargo as new reports of chemical weapon use by assad regime emerge. a u.s. senator is freelancing with we rebel leaders over the memorial day weekend, we turn to fox news chief white house correspondent ed henry. >> reporter: obama administration tried to put the best face on e.u.'s decision to end its arms open barringo on syria. >> it sends a message to assad regime that support for
opposition will increase. >> reporter: john mccain kept the heat on the white house after a secret memorial d to syria, tweeting it was an opinion visit with -- important visit with brave fighters in syria. with military analysts declaring pressure is building to presiddnt obama to arm the rebels, after mccain's high profile visit. >> the second thing is a bit of a poke in the eye to the obama administration. by saying, look, i am here, imwilling to support the army of the rubbles, time to -- rebels time to get onboard. >> reporter: otter expert note some rebels are tied to al qaeda and mccain seems too eager to go to war. >> we can't let go of afghanistan, now he wants to us actively support syrian rebels. >> reporter: john kery is pushing for an early june conference in geneva.
>> we want to make this conference happen, with many other countries. >> reporter: russia also is working against the u.s.'s interest, by giving antiaircraft missiles to assad's regime, infur yates israeli officials. >> because we act forcefully. against any threat or any attack. >> reporter: president signals in two speeches over last week, one av national defense university, and one at arlington national cemetery he is realigning america's war in the world. >> this time next we're we will mark the final memorial day of our war in afghanistan. so, as i said last week, america stands at a cross roads. >> the daily bee claims that president has for a new plan of a new flow zone over syria,
today the pentagon shot that down. lou. lou: thank you, ed henry, chief white house correspondent. new development concerning ben beebenghazi scandal, congressman issa issued subpoenas for state department documents relates to the talking points, he's documents and communication from 10 current and former state department officials, including several who work for former secretary of state hillary clinton, saying that state department refused a number of requests to provide these documents, he is giving them until june 7. >> great economy reports, a triple digit rally net dow, we're joined by s&p sam stovall next. >> chinese hackers stealing u.s. military secrets, as defense hawks try to push thh united states into conflict in syria.
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lou: president obama and governor of new jersey reunited on jersey shore 7 months after superstorm sandy, president obama, telling residents there that jersey shore is quote, back and open for business. end quote. but despite the president's reassuring words many shore communities are still struggling and struggling mightily to rebuild. new jersey suffered 42 billion-dollars of damage from sandy, many homes are still being demolished or gutted.
the red cross has not spent more than a third of more be that 300 million it raised to help the sandy victims, red cross said they will need that cash to address storm victim's long-term needs, they say are not being -- that are not immediately apparent. we'll be looking into that as well. turning to the syrian conflict. an arms race may be brewing as united states and russia try to bridge the assad regime, and opposition leaders together for peace talks, joining us now former pentagon official, kt mcfarland, and general jack keane, retired former army general, chief of staff, it is great to have you both with us tonight. kt. start with the spectacle of you will with a senior senator of arizona, going to syria to talk about arming rebels, your reaction? >> we do not belong in the
middle of someone else's civil war, this is a great tragedy, what is the objective? how are you going to achieve that objective, this is not ease or quick, i think the story you opened broadcast, chinese hackers that is where we should pay attention, to syria is important, but, the chinese stealing trillions of dollars of american intellectual capital and defense, capabilities is to me is where the problem is. lou: i'm confirmed in our lead. >> you are. lou: general your thoughts on syria. >> i disagree, if we never want to be involved in anyone's civil war we never back any insurgencies. and we have done both of those, i think. largely for pretty good reasons, the fact is no less than secretary of state clinton, and petraeus believe it is possible to arm rebels, vetted groups still achieve some outcome, i don't believe it could be
decisive now, time on the side of the assad. and he clearly is on the move. and frankly, i believe this obama administration and others are paralyzed by fear of adverse consequence, their the situations is hopeless there is nothing we did do about it we can do something about it. i also would take down assad's airfields and a lot of his missile systems, i would not establish a no-fly zone yet, but the tipping point, militarily, want assad to go, would be stop his air power from flying, once that happens, the momentum will -hift quickly, does not mean we know what political outcome will be, we down, that is the retaly of it, we know what we get if assad stays in power. >> syrian rebel setting a 24 hours deadline for hezbollah to withdraw from its support of assad is there a possible that
would be met? >> no. lou: what is u.s. interest. >> syria is now liking bar scene in the star wars movie, every bad guy in the universe is there, over a house rebel groups, the most powerful once are tied to al qaeda, they are afilliated. any threat that anyone is making right now is not going to happen, they are in it to fight to the finish, if i have to say for a minute. general jack keane, i respect when you said but when you say i don't know what the political outcome is, what did we just have? i'm not sure this is a situation we want to go in again, and roll the dice, and hope it will be better than when we have, assad is a murderous thug, he will you know rot in hell, but the thought we'll get involved in a war in middle east where we don't know political outcome is
short-sighted. lou: general, go ahead and respond, then i have a question to follow-up. >> it is not just about assad, he is a brutal dec at this time -- dictator, we do have change sweeping through middle east it does prevent us some opportunity to influence outcomes not control them, and military action i'm suggests would be limited. and reality this is more about iran than it is about syria, this is our strategic enemy in middle east, they set on their geopolitical objectives to control the region, the coalition of lebanon, syria and iraq is real to them, they are in, they have thousands of fighters on ground, they have a 2 star general killed to drowned that is how serious they are -- they use proxies, and hezbollah are very much involved for the same reason, a lot of risk to hezbollah here because they are
fighting jihadists as well. you get eye sens a sense of howt is, to me if is a geopolitical interest in the region. lou: it has to focus on our key allie in the region, that is israel. which is first of all, alarmed to point of making sirius threatsd today. if the f300 russian missiles are brought in and israelis are uncontinental forth an about -- uncomfortable about that, because of the involvement of various elements of radical islamist groups. >> no mistake about it. yeah, i agree with that premise, this is number one issue for the israelis, the transfer of weapon systems to the ahea hezbollah, s
difficult to transfer s300s to hezbollah, but there are chemical weapon there and other issues, does not make realty of s300 any less real, that is a sophisticated sim, in the hands of the syrians they could do real damage, but the fact of the platter is, this is a defense system that is well within u.s. capability to defeat, but a few other countries could defeat it. lou: turn to issue you raised. i wanted to understand why now. we have known that the chinese are carrying out with their front companies and their cyberattacks, assaults on u.s. intellectual capital, weather control of our military or under the control of the private sector, for literally, two decades. why now, why is it information leaked and released? how did washington post gets it happened on this? to what end or purpose of that
obama administration. >> it is reaching a critical mass, every one of our major weapon system seems to have een hacked, and they hacked into the fighters, they put one out on tarmac before we could, i think you are seeing a lot more of it, it is reaching critical mass. lou: general, your thoughts? >> well, i think we have to take the gloves off with china, we -- private security company that exposed this number of weeks ago, could have exposed 20 different attacks, they had pictures of the people doing it, that is how much we know that is a private security company, we know what the chinese are doing, we steal their intelligence, they steal our technologien and teligent, we have got to expose them for what they are doing, and we're unwilling to do that. and until this obama administration is willing to do, that they will keep oncoming, they do not want public exposure
they believe they have deniability because it is cyber, you don't know who the hackers are, put it out publicly, at least tell chinese, we're going to expose you unless you change your behavior, this is what we can give do the world public at large if you don't curb your behavior, we may make progress with these guys. lou: general jack keane, and kt mcfarland i thank you. lou: coming up, the authors of the books, will join us friday. next week legendary defend are of firstment in wilment amendmeo us talk about his new book, you don't want to miss any of those folks, up next, bulls keep charging a record day on the do you wall street veteran sam
stovall shares his perspective, and more straight ahead. stay with us. ople a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ t question is how do you make sure you have the money you need to enjoy all of these years. ♪
♪ lou: another record performance for wall street following upbeat news on the economy. the dow jones industrials closing on a new record high, s&p and nasdaq also moving higher almost one fulll. volume on the big board, just under three and half million shares. ratings agencies moody's raising its outlook to stable from negative word has been since the 2008 financial crisis. gold falling $8, selling just below eight teen -- 1318 oz. crude-oil up, and the bond market on the ten year note soaring to 213% of the highest level in more than a year. my next guest says excitement in these markets is coming from orranic growth, not just the fed's easing money policies, but
only on -- a matter of time before we see something new. joining us, chief equity strategist for s and p capital strategists. so, you see things moving ahead and tell they don't, is that -- am i right? >> a pretty good description. i think all longer term. a big upward turn for the market, mainly because the economy is staying out of the recession. it is growing, albeit quite slowly. corporate earnings are rising. we are not at stressed levels of valuations, p/e ratios. interest rates are low and quite frankly, not a lot of alternatives out there for. lou: today week saw the market moved up. it gave about half of it back. still, a great performance on the day, the data new record high. you kind of wonder, when you see this interest -- enthusiasm that lanes during the course of the session it makes you think a little bit.
>> i think what we should be thinking is we are listening to the pilots say, fasten your safety belts, we might be approaching turbulence if. she is not saying dawn your parachute and a symbol by the door. basically, the decline in stock prices of five to even 20 percent has happened on average every year since world war ii. is not a rare occurrence. i would basically say they will probably see some turbulence, but it will probably also end up being a good buying opportunity. lou: great news for the banks, in particular. the financial said been doing very well, despite the failure of moody's to act for just about five years on their upgrade. housing, i mean, these are remarkable numbers. we are looking at so many quarters of this economy that are doing very, very well. we have ligers without question, but where does this economy go now? and what will be the key here that says to the fed
specifically mr. bernanke, it is time to, you know, give very serious and stoic and start talking about taking it from a 5 billion to may be 60. >> when you start with a low number, improvement of that number turns out to be a big percentage change, so we are still looking at housing data that is well below the average is going back to 2007-2008. but because they are very low on inventory levels, because a very small numbers, the percentages look good. that does not mean you should dismiss them. it says that things are healing. our overall economy remains in what i call i have speed recovery mode, all the growing and about half of what the normal rate has been in the first through fourth year of the economic expansion, and we are now beyond the average age of an economic expansion since world war two. lou: so investors can look at and say, well, only half did it get a little power behind it and pick up the other half or from
where we have been, have this pretty good. >> true. and because investors are still pointinn to a weakness in the economy, elevated and employment rates, also looking really at other factors that worry them, that is why they aren't not jumping in together and the old saying that the bull market takes the stairs while a bear market takes the elevator. lou: your best counsel to investors right now given where we are and where you think we are headed. >> make sure that you have the appropriate exposure to equities based upon your age, time horizon, risk tolerance. don't go to extremes, and it don't get caught in the overall transfer. at the same time, if you are going to keep waiting for a pullback in prices, you might be waiting for a while. lou: great to see you. thanks. now, the weekend box office breaking records with the biggest memorial day weekend in history. universal pictures celebrating their biggest did you ever, fast and furious sixth -- i said six. it finished first taking in over
96 million. warner brothers the hangover part three came in second with a lousy $42 million. and it star trek into darkness claiming third place with 37 million. that is a powerhouse weekend. the irs scandal expands as a number of agencies and congressional committees launch investigations. former congressman dennis kucinich on president obama is very bad month. attorney-general eric holder accused of lying under oath. you should investigate america's top lawman? we take that up next in the "dobbs law." ♪ all stations come over to missioa for a final go.
the so-called virus acts like a cold attacking the respiratory system and eventually leads to pneumonia and kidney failure first discovered back in september and since then has infected, get this top 44 people worldwide. that's, the who knows exactly how many people have been infected with this switch in and of itself is interesting. most of those people are in the middle east, and half of those infected, half of the 44 who have been infected with this virus have died, 22 people. and they are watching it, obviously, very closely. four separate investigations into the internal revenue service targeting conservative groups in our next guest says the scandal will lead disappear anytime soon. joining as is former democratic congressman, fox news contributor, dennis kucinich. great to have you here. >> good to be with you. lou: this irs targeting
conservative groups, there are now four committees that have set out to investigate. your thoughts? >> well, the fact that every american has some intersection in their lives to with the irs every year, this shows you that people understand the power of the s, and win there is information or some acknowledgement that power has been misused the american people can understand that, and that is really a mark against the government because people don't want this kind of intrusive power used against them for political purposes. that is why it this is not going to go away soon. lou: and its rock abuse of power, and the investigations are reaching out to chicago, starting in cincinnati , reaching across the country, and this goes beyond simply the targeting
as if that is not bad enough, because it certainly is, the targeting of conservative groups for political purposes, but then sharing that information with left-wing news outlets. i mean, that is pretty strong and dangerous stuff compounding it all. >> well, you know, it is very interesting. i have heard the stories. on one hand, the media is being told that in some cases it may compromise national security by pursuing some story with a source. on the other hand, we have the media, the potential of the media being used in order to further a political attack. this is not appropriate. we have to have the government get its house in order here. lou: to be clear, the epoxy and the contradiction and then the actual contradiction of the intellectual architecture there
is all that of the obama administration. it is not external to the administration. they created it all themselves, and they? they chose to pursue leaks. they just -- >> right. i have been right at the forefront in challenging the violation of the first amendment that i have seen, the -- going in surveiling the media, the violation of the rights of, in this case, conservative groups, whose politics were the basis for an irs inquiry. we, as americans, have to close ranks here because when it comes to making sure that the power of government will not be misused, this should not be a democratic, republican issue. we all must agree. lou: and i think that you and nightt and i have pointed out that an independent and
democrats can agree -- may be an independent conservative. you want to attach anything to that? >> my first loyalty is to my country. lou: amen, brother. >> we cannot be so loyal to a party that it blinds us to what is going on and we begin to perceive things selectively when let's say some of my republican brothers and sisters cannot see some of the problems in the bush administration but can in the obama administration. this kind of politics that is polarized is dividing our country further, and we need to have a coherent view of exactly what is happening, and the way you do that is to see it clearly without regard to partisan affiliation. lou: and the curious blessing that sometimes comes up like a burden. agassi a few problems with the bush administration as well as this one. thank you so much. dennis descent to -- dennis kucinich, we appreciated. take a moment to get in touch
with us. e-mail me. firstname.lastname@example.org. tweet me. how about that. up next, house lawmakers investigating whether the attorney general live and growth we will take a look at the evidence. tell us what you think. "dobbs law" on the case. arthur idolater joins us. i am sure he will agree. we're coming right back. ♪ tossing and turning have
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se judiciary committee investigating whether attorney-general eric holder lied under oath earlier this month. at issue, his claim about whether a new about prosecuting reporters under the espionage act. >> with regard to the potential prosecution of the press for the disclosure of material, that is that something that i've ever been involved and heard of or would think would be a wise
policy. lou: we now know that it was the attorney general who personally approved the search warrant concerning fox news james rose in. joining us now, former prosecutor, criminal defense attorney, both fox news legal analysts. it looks to me like the attorney general lied. >> i think that is pretty plain and simple that he absolutely did. he did not have any knowledge. find out by the magistrate judge that he was given wrong information and the only reason he signed off on the warrant for roses e-mail addresses, and he signed off on it. now he is saying he did not know about it. good luck on the funding that one. >> excuse me. i didn't it -- lou: come out of your corner. >> is in this your former agency? lou: that looks like us trade and open and shut case. >> i have had clients to have
been threatened with jail for a lot less than that, less than that. martha stewart went to jail for basically the same exact thing, and she is a layperson. he is not only in attorney, he is supposed to be prepared. there is no excuse to have a lapse in judgment. lou: see essentially said i don't note seven times. >> find out and signed off. >> the former agency, the people who are supposed to prevent people from line went in front of the prestigious panel and lied. >> so you agree with me then. >> i agree that your former employer messed up. should be punished. the same way you always want my clients to be punished. lou: there is agreement. lou: let's proceed. we have a lot of the dockage here. i know about press. i know about dockets.
>> case files. >> the xbox issue and the hen and the lion has pushed the associated press under the table. >> and that happened a week before we heard about rosen. that was already there, so this is the second and maybe the third. lou: we do not know how much experience this attorney general has in, one, going after the press because this -- this -- these court documents were sealed for a year-and-a-half long then they were supposed to be. a judge, by the way, apologized for that. >> the judge get that information. lou: bad information? your going after an organization and calling a correspondent the criminal. >> to be fair to the judge, but he had in front of him was an affidavit that holder signed off on. lou: to sign that affidavit, the u.s. attorney? >> the fbi. lou: and the fbi agent, both, correct?
>> right. >> and then they bring it to the judge, but it is based on the at -- there are many same issue that never happened. it would have gotten through the layers before it even got. ♪ you know why it got through? get a bunch of true believers in the room. >> i don't know what they are believing in. that is the issue. they did not believe in the constitution of the united states. they sure as hell did not believe in that, did they? maybe ashes called venture disbelievers. what do you think? >> to try and think that they did not realize, that is not the judge. it would not get caught. you're talking about fox news. lou: let's back off here just a bit. when i said rue believers, i mean that in the political sense. the reason that i think that we have a pretty good case for that is, the attorney general had to shop this deal around looking.
>> it was the third. lou: i don't think there is much wiggle room, even for these folks to make a living out of wiggle. >> and the term that is used in the law is killing effect. you are not supposed to create a chilling effect for the media to do their job. to pick up the phone and call he needs to do. >> and is not just james rose in -nd fox news. it is everything. to tell a reporter, if you do your job will come after you and call you a co-conspirator. lou: the reason he says cbs is because of cheryl atkins. so far -- i mean, we have to take them at their word. the justice department's said it did not do it. adult think we have to take them at their word. that is huge. >> that investigation will go on. lou: this administratton is responsible. i mean, such a disgusting.
accountability. there needs to be integrity. >> well -- lou: steve think will get an invitation? >> i don't think that would being out there anytime soon. lou: thank you very much. >> thank you, sir. lou: both great. >> and we are not fighting. >> well, littleebit. fighting on the promise f. lou: coming up tomorrow, author of the best selling book, ed klein, former columnist will be with us. up next, america's greatest days are yet to come, so say the authors of this brand new book. they explain, america the version three next. ♪ alec, for this mission i upgraded your smart phone. ♪ right. but the most important feure of all is... the capital one purchase eraser. can redeem the double miles i earned with my venture card terase recent travel purchases.
lou: my next guest says that at that time when our government is crushingly expensive, failing in its basic functions command seemingly unable to keep its promises, america's best days are still ahead of us. america -- america 3.0, rebuilding american prosperity in the 21st century. thank you for being with us. want to start, if i may, because it is so timely, talking about the abolition of the internal revenue service. let me start with you. you would have thought that such a thing was even -- well, even at a distance possible. people are talking about it right now out of the anchor what the irs has done. >> we were a little surprised at a prediction that we thought would be much farther downstream and now seems a little more apt because of the recent events. what our thinking is is that the country is in at time of transition. it seems like it is in decline,
and you have people who say everything is falling apart, but it is not. we're moving from a 20th-century industrial era government that cannot do its job anymore but have a replacement is coming next. the irs is the classic mid 20th century big bureaucratic heavy handed operation. regrettably it is also recently pretty obviously politically corrupt as well. so the sooner that we can move toward that the better. lou: you guys argued that tte government is going to become smaller, less significant. how so? >> well, we believe that as we say, we are at a transition point between it and all system, what we now call america 20 which served the country and it's time that has become too big and cumbersome and is now working. obviously coming up against a financial crunch where basically the promises have been made by eight and just cannot be kept in the form that they have been
made. i think that we will have a series of financial political crises. we have always seen -- i think they're more to come. at some point people will realize that more of the same is not going to of work. more of the same, but twice as far is not going to work. more of the same bill with better people, none of those will work. we say that the financial political crises are going to force us to do what we call the big hair cuts, look at the enormous debt positions which have been run up with the ability to pay and say, we are going to have to have grand bargain is where the important thing is ted be as fair as possible. things get trimmed back. lou: let me ask you, what will drive this new era of prosperity what will be the catalyst, the driving force? would it be -- what is now an
imminent energy boom in this country, technological breakthrough? what would be? >> i think there are a few features. the energy boom is nice to have. the technological changes are was appreciated an important is the american people and the culture that we have here and have had for centuries really prepares us for -- to be an enterprising freedom loving community. the new technology is not like the 20th century industrial era mass production technology. it will be much more like back when you had family farms and small businesses 150 years ago except immensely more productive and connected with each other. lou: thank you very much. airboat is america -- america 3.0, on sale now on line in bookstores everywhere. go to loudobbs.com for links to the books as well.
neil: forget the attorney general or acting irs commissioner or former irs big wig, now on leave. if you want to know what scandal stands to make you really sick, it is woman overseeing health care law presumably in charge f keeping us well, it is sebelius. i am serious. i am neil cavuto, sebelius is running scared, getting scrutneeded for hitting up private companies for singing the praises. it is not s